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Case 1 :08-cv-00131-S-DLM Document 2 Filed 04/11/2008 Page 1 of 1 

^ AO 120 (Rev. 3/04) 



TO: 



MaU Stop 8 

Director of the U.S. Patent and Trademark Office 
P.O. Box 1450 
Alexandria, VA 22313-1450 



REPORT ON THE 
HLING OR DETERMINATION OF AN 
ACTION REGARDING A PATENT OR 
TRADEMARK 



In Compliance with 35 U.S.C. § 290 and/or 15 U.S.C. § 1 U6 you are hereby advised that a court action has been 
filed in the U.S. District Court RHODE ISLAND on the following X Patents or □ Trademarks: 



DOCKET NO. 


DATE FILED 


U.S. DISTRICT COURT 




08-131S 


4/11/08 




RHODE ISLAND 



PLAINTIFF 
Michael R. Schramm 
Little Kids, Inc. 



Placo Toys Incorporated 



PATENT OR 
TRADEMARK NO. 



RE 39.443 



2 6ihS'i.i^l 



DATE OF PATENT 
OR TRADEMARK 



HOLDER OF PATENT OR TRADEMARK 



Michael R. Schramm 



DATE INCLUDED 



In the above— entitled case, the following patent(s)/ trademaTk(s) have been included: 

□ Amendment □ Answer □ Cross Bill 



PATENT OR 
TRADEMARK NO. 



INCLUDED BY 



□ Other Pleading 



DATE OF PATENT 
OR TRADEMARK 



HOLDER OF PATENT OR TRADEMARK 



3 



4 



In the above— entitled case, the following decision has been rendered or judgement issued: 



DECISION/JUDGEMENT 


CLERK 

/s/ DAVID A. DiMARZlO 


(BY) DEPUTY CLERK 


DATE 

4/11/08 



Copy 1-Upon initiation of action, niaU this copy to Director Copy 3-Upon termination of action, maU this copy to 
Copy 2— Upon filing document addhig patent(s), maU this copy to Director Copy 4— Case file copy 



Case 1 :08-cv-00131-S-DLM Document 2-2 Filed 04/1 1/2008 Page 1 of 6 



UNITED STATES DISTRICT COURT 
FOR THE DISTRICT OF RHODE ISLAND 



MICHAEL R. SCHRAMM and 
LITTLE KIDS, INC., 




08 131 



Plaintiffs 



V. 



C.A. No. 



PLACO TOYS INCORPORATED, 



Jury Trial Demanded 



Defendant 



COMPLAINT 



Plaintiffs, Michael R. Schramm ("Schranun") and Little Kids, Inc. ("Little Kids"), for 
their Complaint against Defendant Place Toys Incorporated ("Placo" or "Defendant") allege as 
follows: 



1 . This civil action is for infringement by Placo of Schramm's United States Letters 
Patent No. RE 39,443 (the "'443 Patent"), This civil action is also for declaratory judgment that 
Little Kids has not infringed Defendant's U.S. Patent No. 6,659,831 (the "'831 Patent"). This 
civil action arises under the patent laws of the United States, 35 U.S.C. §§ 271 et se^ and under 
28U.S.C. §2201 etseg. 



2. Schramm is an individual residing at 350 West 2000 South, Perry, Utali 84302 
and is the inventor of a number of innovative bubble toys. 

3, Little Kids is a Rhode Island corporation with a principal place of business located 
at 225 Chapman Street, Suite 202, Providence, Rhode Island 02905. Little Kids is a citizen only 



Nature of the Action 



Parties 



1 



Case 1:08-cv-00131-S-DLM Document 2-2 Filed 04/11/2008 Page2of 6 



of the State of Rhode Island. Over the past 19 years, Little Kids has grown from a start-up 
company with no sales, to a company with a principal place of business in Providence, a 
Cranston warehouse, a workforce of more than 40 employees, and relationships with 
manufacturers, assemblers, product development firms and service providers who employ 
hundreds of people in Rhode Island for whom Little Kids is a significant account. 

4. Plaintiffs are informed and believe that Defendant Placo Toy Corporation 
("Placo") is a California corporation with its principal place of business located at 6055 E. 
Washington Boulevard, Commerce, California, 90040, and is a citizen only of the State of 
California, and that Placo is a subsidiary or affiliate of Placo Corporation Limited, a Hong Kong 
corporation vsdth offices at 63 Mody Road, Tsim Sha Tsui East, Kowloon, Hong Kong. 

Jurisdiction And Venue 

5. This Honorable Court has original and exclusive subject matter jurisdiction under 
28 U.S.C. § 1338(a) because this action arises under the Patent Act. Jurisdiction also is 
conferred by 28 U.S.C. § 1331 because this is a civil action arising under the laws of the United 
States. 

6. Plaintiffs are informed and beUeve that this Court may properly exercise its in 
personam jurisdiction over the Defendant because Defendant does business in the State of Rhode 
Island and has sufficient minimum contacts vnth Rhode Island. Plaintiffs are informed and 
believe that Defendant sells to retailers in Rhode Island, knowing its products would be sold iji 
RJiode Island. Little Kids has purchased infringing product in the State of Rhode Island. 

7. Venue is proper in Rhode Island pursuant to 28 U.S.C. §§§ 1391(b) & (c) and 
1400(b). 

Backgroimd 

8. Schramm is the sole owner of the '443 Patent The '443 Patent was duly and 
legally issued by the United States Patent and Trademark Office to Schramm. The '443 Patent is 

2 



Case 1 :08-cv-00131-S-DLM Document 2-2 Filed 04/1 1/2008 Page 3 of 6 



a reissue of United States Patent Number 5,908,057, owned by Schramm. A copy of the '443 
Patent is attached hereto as Exhibit A. 

9. Schramm and Little Kids entered into a license agreement concerning the '443 
Patent dated and effective as of January 29, 2007, and the agreement remains in fiill force and 
effect. 

1 0. Schramm and Little Kids have the exclusive right to exclude others and to recover 
damages for infringement of the claims of the *443 Patent. 

1 1 . Placo has made sales of in£inging products and intends to continue to make sales 
of infringing products. 

12. As a direct and proximate result of Place's acts of infringement and other 
violations of the law, Plaintiffs have suffered damages. 

13. As a direct and proximate result of Place's acts of infringement and other 
violations of the law, Plaintiffs have suffered and continue to suffer irreparable harm for which 
there is no adequate remedy at law, 

COUNT I 

(Violation of Patent Act as to the '443 Patent) 

14. Plaintiffs reallege and incorporate by this reference paragraphs I through 13 of 
this Complaint. 

15. Defendant has infringed and is infringing, has induced and is inducing others to 
infringe, or has contributed and is contributing to the infringement by others of the *443 Patent, 
by making, using, offering for sale, or selling, throughout the United States, products that 
infringe the claims of the '443 Patent, and will continue to do so unless enjoined by this Court. 
Plaintiffs are informed and believe that the infringing products as to the '443 Patent include 
bubble toys sold by Defendant under the names "hifinite Bubbles" and "Sizzlin' Cool" and 



3 



Case 1 :08-cv-001 31 -S-DLM Document 2-2 Filed 04/1 1 /2008 Page 4 of 6 



Defendant's product number 4916, and under the name "Infinite Bubbles" and Defendant's 
product number 4626 ("Defendant's Buckets"). 

16. As a direct and proximate consequence of the acts and practices alleged. Plaintiffs 
have been, are being and, unless such acts and practices are enjoined by the Court, will continue 
to be injured in their respective business and property rights, and have suffered, axe suffering, and 
will continue to suffer injury and damages, for which Plaintiffs are entitled to relief under 35 
U.S.C. § 284. 

1 7. By reason of the acts and practices alleged herein. Defendant has caused, is 
causing and, unless such acts and practices are enjoined by the Court, will continue to cause 
immediate and irreparable harm to Plaintiffs for which they have no adequate remedy at law, and 
for which they are entitled to injunctive relief under 35 U.S.C. § 283. 

WHEREFORE, Plaintiffs pray for judgment in its favor and against the Defendant: 

( 1 ) for all remedies available under the Patent Act, including those under 35 U.S . C. 
§§ 283, 284 & 285; 

(2) for a preliminary and a permanent injunction prohibiting Defendant from 
infringing the '443 Patent; 

(3) for a preliminary and a permanent injunction prohibiting Defendant from making, 
offering for sale, or selling its infringing goods; 

(4) for a preliminary and a permanent injunction ordering Defendant to recall and 
remove from places of sale the infringing goods; 

(5) for an order impoimding the infringing goods; 

(6) for a preliminary, and a permanent injunction ordering Defendant to deliver upon 
oath the infringing goods; 



4 



Case 1:08-cv-00131-S-DLM Document2-2 Filed 04/11/2008 Page5of6 



(7) for an accounting for all profits derived by the Defendant on the manufacture and 
sale of the infringing goods; 

(8) for an award of compensatory damages; 

(9) for an award of costs and attorney's fees; and 

(10) for such other relief as the Court deems just. 

COUNT n 
(Declaratory Judgment^ 

1 8. Plaintiff Little Kids incorporates by this reference as though fiilly set forth herein 
paragraphs 1 through 3 inclusive of this Complaint. 

19. Defendant notified Little Kids that Defendant considers Little Kids's product sold 
under the mark "My First Bubble Blower", and shown in Exhibit B hereto ("My First Toy"), to 
infringe Defendant's '831 Patent. 

20. Plaintiff Little Kids attempted to resolve the dispute with Defendant, but was 
unable to do so. 

2 1 . Plaintiff Little Kids denies that its My First Toy infringes Defendant's * 83 1 

Patent. 

22. If Plaintiff Little Kids's My First Toy infringes the '83 1 Patent, the '83 1 Patent is 
invalid and unenforceable. 

23 . By reason of the foregoing, an actual controversy has arisen and exists between 
Plaintiff Little Kids and Defendant as to whether the My First Toy infiinges the ' 83 1 Patent. 



Case 1 :08-cv-00131-S-DLM Document 2-2 Filed 04/1 1/2008 Page 6 of 6 



WHEREFORE, Plaintiff Little Kids requests that: 

(1) This Court enter a judgment declaring that the My First Toy does not infringe the 
'831 Patent; 

(2) This Court enter a judgment declaring that the * 83 1 Patent is invalid and 
unenforceable; 

(3) Defendant be enjoined pending the final adjudication of this action, and 
permanently thereafter, from asserting that the My First Toy infringes the '831 Patent; and 

(4) This Court grant such other and further relief as deemed appropriate by the Court. 



Plaintiffs, 

MICHAEL R. SCHRAMM and 
LITTLE KE)S, INC. 



/s/ Robert D. Fine 




Robert D. Fine (# 2447) 
Douglas L Emanuel (#5176) 
Chace Ruttenberg & Freedman, LLP 
One Park Row, Suite 300 
Providence, Rl 02903 
Tel: (401)453-6400 
Fax: (401)453-6411 

JURY TRIAL DEMANDED 



/s/ Robert D. Fine 




Dated: April 2008 



Robert D. Fine (#2447)